Multinational Corporations have gotten much bigger recently. They operate in more countries, make more revenue and employ more people than before. There are also a a lot more MNCs then before.
The biggest multinational corporation as of right now, Walmart:
operates in 28 countries, under 59 different names
has about 2.2 million employees, 1.5 of which are from the United States alone
had an annual revenue of about 480 billion in 2016
Although Walmart does operate on a global level, they don’t go under the name Walmart everywhere. Instead, they own subsidiaries, which are companies that have 50% or more of its stock owned by one corporation. One big reason why subsidiary companies are used is to help protect each company from legal liabilities. For example, if ASDA, one of Walmart's subsidiaries, is sued, then none of the other subsidiary companies are affected. This doesn't work both ways though, as if Walmart is sued, its subsidiary companies could also be affected.
Walmart and the subsidiary are independent of each other. Because Walmart is the sole or majority shareholder of these companies, they receive a portion of the subsidiary companies revenue.
Multinational Corporations II
Multinational Corporations Today
Multinational Corporations have gotten much bigger recently. They operate in more countries, make more revenue and employ more people than before. There are also a a lot more MNCs then before.
The biggest multinational corporation as of right now, Walmart:
operates in 28 countries, under 59 different names
has about 2.2 million employees, 1.5 of which are from the United States alone
had an annual revenue of about 480 billion in 2016
Although Walmart does operate on a global level, they don’t go under the name Walmart everywhere. Instead, they own subsidiaries, which are companies that have 50% or more of its stock owned by one corporation. One big reason why subsidiary companies are used is to help protect each company from legal liabilities. For example, if ASDA, one of Walmart's subsidiaries, is sued, then none of the other subsidiary companies are affected. This doesn't work both ways though, as if Walmart is sued, its subsidiary companies could also be affected.
Walmart and the subsidiary are independent of each other. Because Walmart is the sole or majority shareholder of these companies, they receive a portion of the subsidiary companies revenue.
Here are a few of Walmart's subsidiaries:
Article Of How MNCs in India have grown over the past few years to now
Bibliography:
(2017). Our locations. Walmart. Retrieved November 16, 2017, from https://corporate.walmart.com/our-story/our-locations
Multinational Corporation-MNC. Investopedia. Retrieved November 17, 2017, from https://www.investopedia.com/terms/m/multinationalcorporation.aspMurray, J. ( 2017, November 2). What is a subsidiary company. The Balance. Retrieved November 17, 2017 from https://www.thebalance.com/what-is-a-subsidiary-company-4098839
Allensens. (2012, February 27) Multinational Corporations. YouTube. Retrieved November 20, 2017 from https://www.youtube.com/watch?v=FCojpFwWuG0
(2016) Walmart-Sams club combo. EMJ corporation. Retrieved November 18 2017 from http://www.emjcorp.com/project/walmart-sams-club-combo-dallas-tx/
Paton F. (2016, September 8) ASDA sales lose ground against discounters. Inside Retail. Retrieved November 18 2017 from https://insideretail.asia/2016/09/08/asda-sales-lose-ground-against-discounters/
(2017) Japan. Walmart. Retrieved November 16 2017 from https://corporate.walmart.com/our-story/our-business/international/walmart-japan